I think both will see a price appreciation. But usually the ceiling is on the laggard and not the leader. There's a ceiling on RIMM not on Apple, ceiling on Time Warner not Google.
The “Battle” is all the competition coming online in 2012. The “ceiling” on Soda’s stock is create by the uncertainly of the outcome of the “war” between Soda and her competitors. And of course all this will take place over months not days in 2012 which means your loss of “time”; In this case, meaning your “opportunity cost” of staying in Soda verses another stock which will have price appreciation.
Lots of talk on PRMW.
If a category is growing more companies will enter it. This is good, AND it helps to grow the category by increasing awareness.
PRMW is the best competitor that you can have. It is WEAK. Weak financials, weak marketing, no brand awareness, no distribution, and weak products.
If you were a large retailer would you risk your holiday season on unproven products and unproven supply chain???
These products will end up in secondary retailers that SODA has chosen not to sell.
Well said...My additions would be the need for PRMW to do secondary.
And the big positive for PRMW is their current distribution base is huge with their water products. And finally, this could allow them the ability to cross sell and bundle their product mix.